Ashish Kacholia portfolio stock Balu Forge shares gain after strong Q1 results. Should you buy?

Balu Forge share price gained over 2% on Wednesday after the company delivered strong Q1 results. The Ashish Kacholia portfolio stock Balu Forge shares extended gains for the fifth consecutive session, rallying more than 21% in one week.

Precision engineering and manufacturing company Balu Forge Industries reported a net profit of ₹34.16 crore in the first quarter of FY25, registering over two-fold growth, or 104.96% jump, from Rs16.67 crore in the year-ago quarter, driven by higher income.

The company’s revenue from operations in Q1FY25 increased 56% to ₹175.3 crore from ₹112.38 crore, YoY, helped by focus on client addition and continued demand for the specialised engineering products.

At the operational level, EBITDA (Earnings before interest, taxes, depreciation and amortization) in the quarter ended June 2024 grew by 97.31% YoY, while margins expanded by 516 bps to 24.64% on account of increase in scale of operations and increased demand for heavier products which tend to yield better margins, Balu Forge said.

Trimaan Chandock, Executive Director of Balu Forge India Ltd. said that the Indian forging industry is undergoing rapid transition and transformation, with superior implementation of the China 1 strategy to de-risk supply chains.

He also said that the company is committed to expanding its capabilities through strategic investments in assets and the augmentation of its team to deliver top-quality, innovation-driven products.

The board of directors of Balu Forge Industries recommended a final dividend of ₹0.15 per equity share to the shareholders of the company for the Financial Year 2023-24.

Balu Forge share price outlook

Balu Forge share price has rallied more than 77% in three months. The Ashish Kacholia stock hit a 52-week high of ₹512.40 apiece on Tuesday, July 30.

“Balu Forge shares are in continuous uptrend after giving breakout at ₹425 apiece mark. The Ashish Kacholia stock has made a strong base at ₹470 and is facing a hurdle at ₹550. So Balu Forge shareholders are advised to hold the scrip with stop loss at ₹470 for the short term target of ₹550,” said Sumeet Bagadia, Executive Director at Choice Broking.

Bagadia added that fresh investors can also buy and hold the stock for a short term target of ₹550 maintaining stop loss at ₹470. Long term investors can maintain a buy on dips strategy maintaining stop loss at ₹470, he said.

At 11:10 am, Balu Forge shares were trading flat at ₹491.45 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.